What Does a Tax Attorney Do, Exactly?

Are you having tax troubles?

Over 61% of all taxpayers paid no federal income taxes in 2020. Whether it’s deliberate or accidental, tax problems can happen. When it happens to you, don’t panic yet.

Your first move is to contact tax attorneys. In this guide, we’ll discuss what a Tax Attorney can do for you. Read on and avoid problems with IRS taxes now:

What is a Tax Attorney?

These lawyers help clients comply with tax codes. They guide you through the complicated system to take advantage of various legal perks. Some of these include deductions, exemptions, and credits.

Tax lawyers are also responsible for settling tax disputes. Some work as government workers or corporate in-house counsel. Regardless, they represent both business and individuals.

When tax issues happen, corporations can hire tax lawyers on a contractual basis. Some real estate and employment attorneys also hire these lawyers for advice when they get into tax problems. Discuss your situation with a reputable tax lawyer to take the right course of action.

What to Look for in a Tax Attorney

Searching for the right lawyer ensures you get the most out of your expenses. After all, getting legal representation means paying between $200 and $400 per hour. It applies unless you use Google and type “tax attorney near me a free consultation.”

Regardless, here are the minimum requirements for tax lawyers to practice legally:

A Law License

You can’t consider someone a lawyer unless they have a law license. If they lack this qualification, move on to the next immediately. At worst, they’re scammers looking to take advantage of your tax issues.

When they show their license, verify its authenticity. Search your state’s bar association website. Some lawyers only have a license to practice in another state.

Advanced Education or Specialization

Most states require tax lawyers to finish law school before getting a license. It’s best to look for supplementary education to ensure their expertise. For example, some lawyers get a master’s degree in taxation.

Others go the extra mile and get CPA licenses. It means they’re also certified, public accountants.

Preparer Tax Identification Number (PTIN)

Any professional filing tax returns for a living must get their PTIN from the Internal Revenue Service (IRS). As a preparer, they must sign your tax return and give their PTIN.

Are Attorney Fees Tax Deductible?

As a general rule, legal fees related to your business are deductibles. It applies regardless of whether you win your case. Some of these include fees directly related to your business operations.

Hiring an attorney to resolve tax issues is tax-deductible. It also applies to preparing business-related tax forms. Include them on your Form 1040 under Schedule C.

Hire a Tax Lawyer Now

These are some facts to learn about a tax lawyer. Use these to determine if you need help with your tax issues. To get the most out of your money, look for the right lawyer using the qualities discussed above.

Did you find this article informative? Consider reading our other guides to continue learning today.

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